SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC. 20549

                                    FORM 10-Q

                   QUARTERLY REPORT UNDER SECTION 13 or 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934




For Quarter Ended September 30, 1999              Commission file number 0-10697



                            DORCHESTER HUGOTON, LTD.
             (Exact name of registrant as specified in its charter)




              Texas                                     75-1829064
(State or other jurisdiction of           (I.R.S. Employer Identification No.)
 Incorporation or organization)



        1919 S. Shiloh Road, Suite 600 - LB 48, Garland, Texas 75042-8234
               (Address of principal executive offices) (Zip Code)


       Registrant's telephone number, including area code: (972) 864-8610


                                      None
                  Former name, former address and former fiscal
                       year, if changed since last report


     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the  Securities  Exchange Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes X No

     As of October 31, 1999, 10,744,380 Depositary Receipts for Units of Limited
Partnership Interest were outstanding.


<PAGE>
                            DORCHESTER HUGOTON, LTD.
                          (A Texas Limited Partnership)

                          QUARTERLY REPORT ON FORM 10-Q

                               September 30, 1999


                                      INDEX


PART I.   FINANCIAL INFORMATION

  Item 1. Financial Statements:

          Condensed Balance Sheets as of September 30, 1999 (Unaudited)
          and December 31, 1998

          Condensed Statements of Earnings for the Three and Nine
          Months Ended September 30, 1999 and 1998 (Unaudited)

          Statements of Comprehensive Income for the Three and Nine
          Months Ended September 30, 1999 and 1998 (Unaudited)

          Condensed Statements of Cash Flows for the Nine Months Ended
          September 30, 1999 and 1998 (Unaudited)

          Notes to Condensed Financial Statements (Unaudited)


  Item 2. Management's Discussion and Analysis of Financial Condition and
          Results of Operations



PART II.  OTHER INFORMATION

  Item 1. Legal Proceedings

  Item 5. Other Information

  Item 6. Exhibits and Reports on Form 8-K



SIGNATURES



<PAGE>
                            DORCHESTER HUGOTON, LTD.
                          (A Texas Limited Partnership)
PART I
Item 1
                            CONDENSED BALANCE SHEETS

                       September 30, 1999 and December 31, 1998
                             (Dollars in Thousands)
                                                           Sept. 30,   Dec. 31,
                                                             1999       1998
                                                           --------   --------
                                     ASSETS              (Unaudited)
Current assets:
    Cash and cash equivalents ........................     $  5,308    $ 4,167
    Restricted cash ..................................          386        379
    Investments - available for sale .................        4,864      4,680
    Accounts receivable, net .........................        2,191      1,645
    Prepaid expenses and other current assets ........          169        152
                                                            -------    -------
      Total current assets ...........................       12,918     11,023

Property and equipment - at cost .....................       29,108     28,836
    Less depreciation, depletion and amortization ....      (14,821)   (13,415)
                                                            -------   --------
      Net property and equipment .....................       14,287     15,421
                                                            -------   --------

Total assets .........................................      $27,205    $26,444
                                                            =======    =======
                       LIABILITIES AND PARTNERSHIP CAPITAL
Current liabilities:
    Accounts payable and other current liabilities ...      $   472    $   260
    Production and property taxes payable or accrued .          716        647
    Royalties and production payment payable .........          748        839
    Distributions payable to Unitholders .............        1,956      1,957
                                                            -------    -------
      Total current liabilities ......................        3,892      3,703
Long-term debt .......................................          100        100
                                                            -------    -------
      Total liabilities ..............................        3,992      3,803

Commitments and contingencies (Note 2)

Partnership capital
    General partners .................................          131        128
    Unitholders ......................................       20,735     20,350
    Accumulated other comprehensive income ...........        2,347      2,163
                                                            -------    -------
      Total partnership capital ......................       23,213     22,641
                                                            -------    -------

Total liabilities and partnership capital ............      $27,205    $26,444
                                                            =======    =======
                     The accompanying condensed notes are an
                   integral part of these financial statements.
<PAGE>
                            DORCHESTER HUGOTON, LTD.
                          (A Texas Limited Partnership)

                        CONDENSED STATEMENTS OF EARNINGS
                                   (Unaudited)

         For the Three and Nine Months Ended September 30, 1999 and 1998
                             (Dollars in Thousands)


                                       Three Months Ended      Nine Months Ended
                                          September 30,          September 30,
                                       ------------------      ----------------
                                         1999       1998         1999     1998
                                       --------   -------      -------  -------

Net operating revenues:
     Natural gas sales .............   $ 4,509    $ 3,685      $11,289  $12,064
     Other .........................        51         44          143      148
     Production payment (ORRI) .....      (223)      (164)        (523)    (559)
                                       -------    -------      -------  -------
Total net operating revenues .......     4,337      3,565       10,909   11,653
                                       -------    -------      -------  -------
Costs and expenses:
    Operating, including prod. taxes       900        940        2,643    2,758
    Depletion, depreciation & amort.       477        506        1,427    1,506
    General and administrative .....       139        116          408      390
    Management fees ................       128        120          362      369
    Interest .......................        10         10           28       30
    Other income, net ..............       (86)       (77)        (219)    (175)
                                       -------    -------      -------  -------
Total costs and expenses ...........     1,568      1,615        4,649    4,878
                                       -------    -------      -------  -------
Net earnings .......................   $ 2,769    $ 1,950      $ 6,260  $ 6,775
                                       =======    =======      =======  =======
Net earnings per Unit (in dollars) .   $  0.26    $  0.18      $  0.58  $  0.63
                                       =======    =======      =======  =======

                       STATEMENTS OF COMPREHENSIVE INCOME
                                   (Unaudited)
         For the Three and Nine Months Ended September 30, 1999 and 1998
                             (Dollars In Thousands)

Net earnings .......................   $ 2,769    $ 1,950      $ 6,260  $ 6,775
Unrealized holding gain (loss) on
     available for sale securities .       (72)       (48)         184      475
                                       --------   -------      -------  -------
Comprehensive income ...............   $ 2,697    $ 1,902      $ 6,444  $ 7,250
                                       ========   =======      =======  =======

                     The accompanying condensed notes are an
                  integral part of these financial statements.

<PAGE>
                            DORCHESTER HUGOTON, LTD.
                          (A Texas Limited Partnership)


                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

              For the Nine Months Ended September 30, 1999 and 1998
                            (Dollars in Thousands)




                                                             1999         1998
                                                           -------      -------

Cash flows provided by operating activities ...........    $ 7,287      $ 8,135
                                                           -------      -------
Cash flows used in investing activities:
    Purchases of prop. & equipment ....................       (296)        (917)
    Purchase of securities - available for sale .......        -0-         (741)
    Cash received on sale of other property & equipment         12           30
                                                           -------      -------
Cash flows used in investing activities ...............       (284)      (1,628)
                                                           -------      -------
Cash flows used in financing activities:
    Distributions paid to Unitholders .................     (5,862)      (5,861)
    Reductions of long-term debt ......................        -0-          (22)
                                                           -------      -------
Cash flows used in financing activities ...............     (5,862)      (5,883)
                                                           -------      -------

Increase in cash and cash equivalents .................      1,141          624
Cash and cash equivalents at January 1, ...............      4,167        3,344
                                                           -------      -------
Cash and cash equivalents at September 30, ............    $ 5,308      $ 3,968
                                                           =======      =======












                     The accompanying condensed notes are an
                  integral part of these financial statements.
<PAGE>
                            DORCHESTER HUGOTON, LTD.
                          (A Texas Limited Partnership)

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

1.   The condensed financial statements reflect all adjustments (consisting only
     of  normal  and  recurring   adjustments)  that  are,  in  the  opinion  of
     management, necessary for a fair presentation of Dorchester Hugoton, Ltd.'s
     (the  "Partnership's")  financial  position and  operating  results for the
     interim period.  Interim period results are not  necessarily  indicative of
     the results for the calendar year. Please refer to Management's  Discussion
     and  Analysis  of  Financial   Condition  and  Results  of  Operations  for
     additional information.  Per-Unit information is calculated by dividing the
     99% interest owned by Unitholders by the 10,744,380 Units outstanding.

2.   Through 1998 the Partnership  recorded  $450,000  (which  included  related
     interest)  towards a  request  from  Panhandle  Eastern  Pipe Line  Company
     ("PEPL")  for  refund  of  Kansas  tax   reimbursements   received  by  the
     Partnership  during the years 1983 to 1987.  These charges  resulted from a
     ruling by the United  States Court of Appeals for the District of Columbia,
     which  overruled  a  previous  order  by  the  Federal  Energy   Regulatory
     Commission.  On March 9,  1998  $151,757  was paid to PEPL.  An  additional
     $366,633, which is still awaiting possible  regulatory/judicial/legislative
     action,  was placed into an escrow  account.  On March 2, 1999,  $2,840 was
     released  from escrow to PEPL.  At  September  30,  1999,  the value of the
     escrow is approximately  $386,000.  The escrowed funds include amounts that
     could possibly be waived,  recovered or recoverable  from others,  of which
     $34,000 has been recorded as an allowance for bad debt on the Partnership's
     books in the event it is not waived and deemed uncollectible.

     The  Partnership  is involved in a few other  legal  and/or  administrative
     proceedings  arising in the ordinary  course of its gas  business,  none of
     which have predictable  outcomes and none of which are believed to have any
     significant effect on financial position or operating results.

3.   Since 1994 the  Partnership  has maintained an unsecured  revolving  credit
     facility for $15,000,000 (the  "Agreement")  with Bank One, Texas, N.A. The
     Agreement  has a  current  borrowing  base  of  $6,000,000,  which  will be
     re-evaluated by Bank One at least semi-annually.  If, on any such date, the
     aggregate  amount of  outstanding  loans and  letters of credit  exceed the
     current  borrowing  base, the  Partnership is required to repay the excess.
     This credit  facility  covers both cash  advances and any letters of credit
     that the Partnership may need, with interest being charged at the base rate
     for Bank One,  which was 8.25% on October 31,  1999.  All amounts  borrowed
     under this  facility  will become due and payable on July 31,  2001.  As of
     October 31, 1999,  letters of credit totaling $25,000 were issued under the
     credit facility and the amount borrowed was $100,000.  The weighted average
     amount  borrowed  under the credit  facility was $100,000  during the first
     nine months of 1999.


<PAGE>
                            DORCHESTER HUGOTON, LTD.
                          (A Texas Limited Partnership)
PART I
Item 2
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Net cash flows from operating  activities during the three and nine months ended
September 30, 1999 were  $2,988,000  and  $7,287,000  compared to $2,751,000 and
$8,135,000  for the same  periods  of 1998.  Higher  quarterly  cash  flows from
operations  primarily  resulted from increased natural gas market prices.  Nine-
month cash flows were less than 1998 period,  mainly because of lower Kansas gas
sales volumes.

The Partnership has available a $15,000,000  unsecured revolving credit facility
with a current borrowing base of $6,000,000.  Please see Note 3 to the financial
statements  for  additional  information.  Cash  and  cash  equivalents  totaled
$5,308,000 at September 30, 1999 compared to $4,167,000 on December 31, 1998.

In connection with the Oklahoma  properties,  in May 1999 the  Partnership  paid
approximately  $646,000 in production  payments for the year ended  February 28,
1999; an additional $394,000 has been accrued through September 30, 1999.

The  Partnership's  portion  of gas sales  volumes  (not  reduced  for  Oklahoma
production payment) and weighted average sales prices were:

                                    Three Months Ended        Nine Months Ended
                               ----------------------------   -----------------
                                September 30,      June 30,     September 30,
                               ----------------   ---------   -----------------
                                1999      1998      1999        1999       1998
Sales Volumes - MMCF:          -----     -----      -----      -----      -----
   Oklahoma ...............    1,397     1,432      1,334      4,146      4,281
   Kansas .................      327       413        336      1,011      1,314
                               -----     -----      -----      -----      -----
Total MMCF ................    1,724     1,845      1,670      5,157      5,595
                               =====     =====      =====      =====      =====
Weighted Average Sales Prices - $/MCF:
   Oklahoma ...............    $2.60     $1.97      $2.15      $2.17      $2.13
   Kansas .................     2.68      2.10       2.26       2.25       2.24
Overall Weighted Avg - $/MCF   $2.62     $2.00      $2.17      $2.19      $2.16

Oklahoma gas sales volumes  decreased  slightly  during 1999 compared to similar
periods during 1998. Kansas 1999 gas sales volumes during the third quarter were
slightly  less than the second  quarter of 1999.  Kansas 1999 gas sales  volumes
were lower than the comparable  1998 third quarter and the 1998 same  nine-month
period.  Such  decreases  are primarily a result of natural  reservoir  declines
experienced by the Partnership and other producers in the Kansas area.


<PAGE>
                            DORCHESTER HUGOTON, LTD.
                          (A Texas Limited Partnership)
PART I
Item 2
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                   (Continued)



During the 1999 third quarter, the Partnership fracture treated (creating cracks
in the  formation  to assist  gas flow from the  producing  zones)  two wells in
Oklahoma.  Preliminary results show one well increased from 120 MCFD to 350 MCFD
while almost  doubling in shut-in  pressure.  The other well  increased from 136
MCFD to 275 MCFD and doubled in shut-in pressure.  Increased pressure and volume
usually  results in increased  reserves.  Three  additional  wells are currently
scheduled for fracture  treatment.  During the third quarter,  the Partnership's
Fort Riley formation well decreased from approximately 95 MCFD to 60 MCFD before
removal of water from the well restored the volume to 95 MCFD.  Since then,  the
volume has again decreased to approximately 60 MCFD.

As discussed in the 1998 Annual Report on Form 10-K,  the  Partnership is active
in  supporting  its views  regarding  possible  Oklahoma  regulatory/legislative
action on infill drilling and in monitoring activities resulting from removal of
production quantity  restrictions during 1998 in the Guymon-Hugoton  field. Both
infill  drilling and removal of  production  limits could  require  considerable
capital   expenditures.   The  outcome  and  the  cost  of  such  activities  is
unpredictable.  Recently enacted Oklahoma legislation clarified who must receive
notices  of any  application  for infill  drilling.  Any such  applications  are
expected to be controversial and require lengthy  regulatory  proceedings.  Thus
far only one company on adjoining  acreage has installed gas  compression  since
Oklahoma removed production  limits. The Partnership  elected to install similar
rental  compression to stay competitive.  At present,  five of the Partnership's
wells are assisted by such field compression.  Three of the wells have increased
production  from an  average  of 214 MCFD to 393 MCFD.  The other two wells have
increased  from an average of 51 MCFD to 94 MCFD,  which includes the results of
water  removal.  Operating  costs are expected to increase by $65,000 to $70,000
per  year as a result  of  compression  for the  five  wells.  The  increase  in
production should more than offset costs of compression.

The  Partnership  is continuing to monitor the activity on nearby acreage in the
Council Grove  formation.  At present 15 wells have been drilled by others.  The
Partnership's  ownership includes the Council Grove formation underlying most of
its  Oklahoma  acreage.  It is not known if such  monitoring  will result in any
plans by the Partnership to attempt a Council Grove well;  previous  preliminary
reviews yielded unfavorable  forecasts.  However,  recent results by others have
varied  from 43 MCF per day with  water  production  to over  1,000 MCF per day.
Production  volumes in  subsequent  months have  varied with some wells  showing
increases.  Following  the  litigation  settlement  discussed in the 1999 Second
Quarter Report on Form 10-Q, Blue Star Resources Inc.'s current total production
from the three Council Grove wells on the Partnership's acreage is approximately
165 MCFD, 41 MCFD, and 15 MCFD, of which the Partnership has a minor  overriding
royalty interest.
<PAGE>
                            DORCHESTER HUGOTON, LTD.
                          (A Texas Limited Partnership)
PART I
Item 2
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                   (Continued)



In connection with the Partnership's Year 2000 Readiness Disclosures,  its field
and administrative operations have been reviewed for Year 2000 compliance. These
reviews have disclosed to date that previous  normal  upgrades  resulted in most
internal  operations  already  being  Year  2000  compliant.  All  upgrades  are
essentially  complete  except  for  minor  issues  that are  non-essential.  The
Partnership  previously  contacted its gas purchasers and critical  software and
service  vendors  concerning Year 2000.  Most of those  contacted,  that are not
already  compliant,  have  indicated  they  are  working  to be  compliant.  The
Partnership  is preparing  or has prepared  contingency  plans  regarding  those
contacted that do not currently meet Year 2000 compliance.

The accounting firm that has, for years,  processed the  Partnership's  4,000 to
5,000  individualized  K-1's previously  notified us that their current computer
software, while fully able to process 1999 tax returns in early year 2000, would
not be able to  process  Year  2000 tax  returns  in early  2001.  However,  the
Partnership  was notified  during the third quarter of 1999 that the  accounting
firm had begun  developing new software and had acquired another firm that had a
Year 2000  compliant  product.  However,  conversion  of data to a new  software
product will still be necessary. Consequently, the Partnership still believes it
could incur estimated total expenditures of $150,000 to $200,000 during calendar
year 2000 and 2001 on K-1  preparation  and/or  conversion  costs in addition to
current K-1 processing  costs.  Including the above  mentioned  estimate,  costs
incurred  to  date,  future  costs,  implementation  of  contingency  plans  and
completion of modifications  or replacements  have not been and are not expected
to be material or pose a material risk.

As previously  discussed in the 1998 Annual Report, the Partnership is reviewing
its strategic  alternatives  in light of the various  mergers and other business
transactions  occurring  in the  natural  gas and energy  industry.  Although no
decision  to sell or combine  the  Partnership's  business  with others has been
made, the Partnership anticipates possible discussions with third parties, which
could result in such a decision.  The  Partnership has no timetable for any such
discussions,  and there is no assurance that any such discussions will lead to a
transaction.  During  the  first  quarter  of 1998  the  Partnership  adopted  a
severance  policy, which  would  provide  up to  approximately  $2.8  million of
severance payments.

The  Partnership  has  terminated  its  previously  announced  authorization  to
repurchase  and retire  publicly  traded Units from time to time.  No Units were
repurchased pursuant to such authorizations.

 <PAGE>
                            DORCHESTER HUGOTON, LTD.
                          (A Texas Limited Partnership)

                                OTHER INFORMATION
PART II

     Item 1. Legal  Proceedings:  See Notes to Condensed  Financial  Statements.

     Item 5. Other Information:
         a)  Mr. Rawles Fulgham  was re-appointed  to the Partnership's Advisory
             Committee for a  two-year term.  Mr. W. Randall Blank,  also on the
             Advisory Committee, will be eligible for re-appointment in 2000.

     Item 6. Exhibits  and  Reports  on Form 8-K:
         a)  Exhibit  27 -  Financial  Data Schedule
         b)  Reports on Form 8-K - None.



                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                       DORCHESTER HUGOTON, LTD.
                                       Registrant





Date: November 1, 1999                 /s/ Kathleen A. Rawlings
                                       Kathleen A. Rawlings
                                       Controller (Principal Accounting Officer)